Reports that President Donald Trump was considering a 90-day pause on tariffs briefly sent the stock market soaring before it plunged again when the reports were debunked.
The market’s volatility was triggered by comments from White House National Economic Council Director Kevin Hassett, who told Fox News that Trump would “decide what [he’s] going to decide” regarding tariffs. This followed calls from billionaire Bill Ackman for a 90-day pause to avert economic damage.
CNBC, among other outlets, misinterpreted Hassett’s comments, running chyrons that falsely claimed “Hassett: Trump Is Considering A 90-Pause In Tariffs For All Countries Except China” on its “Squawk on the Street” program.
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The Economic Times headlined with, “Trump considering a 90-day pause in tariffs for all countries except China: White House.”
White House press secretary Karoline Leavitt quickly refuted these reports, telling CNBC that they were “fake news” and that the president remained committed to his tariff regime.
The false reports caused an 8% surge in the stock markets, which then plummeted 3.5% within seconds after Leavitt’s denial, according to Bloomberg.
The market reaction highlights the sensitivity of investors to any news regarding the tariffs, which have already contributed to a sharp downturn in U.S. stocks. The Dow Jones Industrial Average experienced its worst decline since June 2020 on Friday, falling 2,200 points.
President Trump imposed the tariffs with the stated goals of revitalizing U.S. manufacturing and achieving fairer global trade practices.
READ: BREAKING: Trump Threatens 50% Tariffs On China, Warns Of Halting Trade Talks
He previously implemented tariffs on Canada and Mexico, citing their role in illegal immigration and the fentanyl crisis, which reportedly led to actions by those countries to address those issues. Tariffs have also been imposed on foreign automobiles to support American car manufacturing, a move praised by union auto workers.
Trump indicated on Truth Social that several nations are seeking to negotiate with the U.S. on the tariff issue and issued a strong warning to China, threatening to escalate the ongoing trade dispute with new and substantially higher tariffs.
In a statement released Monday, President Trump accused China of retaliating against the U.S. by imposing a 34% increase in tariffs, adding to what he described as China’s “already record setting Tariffs, Non-Monetary Tariffs, Illegal Subsidization of companies, and massive long term Currency Manipulation.”
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President Trump stated that he had warned that any country imposing additional tariffs on the U.S., on top of existing long-term tariff abuses, would face “new and substantially higher Tariffs, over and above those initially set.”
He announced a deadline for China to withdraw its 34% tariff increase: “Therefore, if China does not withdraw its 34% increase above their already long term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th.”
In a further escalation, President Trump declared the termination of all talks with China regarding their requested meetings with the U.S. He stated that negotiations with other countries that have also requested meetings would begin immediately.
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